Crypto Card Payments Face Tighter Rules In South Korea

South Korea’s top financial regulator has announced a plan to limit the use of credit cards for buying and selling cryptocurrencies, citing concerns over illegal fund transfers, money laundering, and excessive speculation. The move is part of the country’s efforts to align with international standards and prevent domestic funds from flowing out to foreign crypto exchanges.

The Financial Services Commission (FSC) is proposing a change to the Credit Finance Act. This new rule would make it harder for credit card users to make payments with virtual assets covered by the “Act on Protection of Virtual Asset Users.” The FSC thinks this will help stop destructive activities and prevent money from leaving the country, especially when dealing with foreign crypto platforms.

The FSC has opened a public consultation period for the proposed amendment, inviting opinions from citizens, organizations, and entities until Feb 13, 2024. The regulator plans to review and vote on the amendment quickly, aiming to implement it in the first half of 2024.

Crypto Legislation: FSC Platform & Tax Clarification

Moreover, The FSC has created an online place for people to be involved in making laws. Here, anyone can give their ideas and opinions on proposed new rules or changes. The watchdog wants to collect different views on the change, which may significantly affect crypto businesses and users in their country.

In a related development, South Korea’s National Tax Service has recently clarified its position on crypto taxation, stating that individuals who hold virtual assets in non-custodial, decentralized wallets, such as cold wallets, do not need to report them as overseas financial accounts. It could provide some relief for crypto wallet holders who were unsure about their tax obligations.

Related Reading | CoinDCX Triumphs Over Fraud Accusations: Crypto Exchange Vindicated In Recent Report

Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.

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